Nevada County picayune., 1887-10-06
CALHOUN'S VIEWS
On Money.

else-the constant demand which the government has on the cOmmu' nifty for it's necessary snpplies. A medium, resting on this demand, which simply obligates the Gov ernment to receive it for all dnes, to the exclusion of everything else. except gold and silvcr-and which shall be optional with those who have demands on Government to receive or not, would, it seems to me. be as stable in it's value as those metals themselves, and be as little liable 10 abuse as the pow CT of coining. It would contain within itself a self-regulating pow. CT. It could only be issued to those who had claims on the Gov ernment, and to those only with their consent, and, of course. .only at or above par with gold and sll- yer. which would be it's habitual state; for, so far as the Govern. ment was concerned, 1t would be equal, in every respect, to gold and silver, and superior in many, particularly in regulating the dis tant exchanges of the country. Should, however, demand for gold and silver from abroad, or other accidental causes, depress it, temporarily, as compared with the precious metals, 1t would then return to the treasury, aud as It could not be paid out during such depression, its gradual diminition in the market would soon restore it to an equality, when it would again flow out into the general cir. culation. Thus there would be an alternate hux and retiuX into and from the treasury, between 1t and the precious metals; but If at any time a permanent depression in it's value be possible from any cause, the only effect would be to ope- rate as reduction of taxes on the community, and the only sufferer would be the Government itself. Against this it's own interest would be a sufficient guaranty. . But, whatever may be the amount that can be circulated, 1 hold It clear that, to that amount, it would be as stable in value as gold and silver itself, provided the Govern ment be bound to receive 1t exclu- sively with those metals in all it's dues and that it be left perfectly.op-
 tional with those who have claims
 on the Government to receive 1t, or not. It will also be necessary
 condition that notes of too small n denomination should not be issu. ed, so that the treasury shall have ample means to meet all demands, either in gold or silver, or the bills of the Government, at the option of those who have claims on 1t. With these conditions no further variation could take place between it and gold and silver, than tha; which would be caused by the az. ton of commerce. "-Calhoun's s works, Vol. III. P P S5-7.
 "To this I might add another objection, not less strong; that for the Government to receive and treat bank notes as money, in it's dues, would be in direct conflict, in It's effect, with the important power conferred expressly on Con. gross of coining money, and regu- lating the value thereof; but as this
 will come in with more propriety in answer to all argument advanc. ed by tue Senator from Massa. chusetts (Mr. Webster). l shall now state his argument, and reply to it. He asserted, again and again, both now and at the extra session, that it is the duty of the Government not only to regulate, but to furnish sound currency.
 Indeed it is the principal argument relied on by the Senator in oppo- sition to the bill, which he says abandons this great duty Now, if by currency he means gold and silver coins, there will be but lttle difference between him and my
 self. To that extent the Govern
 ment has a clear and unquestiona.
 ble right by express grant; but if ' he goes further, and intends to as ! sert that the Government has the
 right to make bank notes a curren-
 cy which it is bound to regulate,
 then his proposition is identical
 with that of the Senator from Nir. ginia tMr. Rives), and all the argu-
 ments l have urged against it are euuallv aUulicable tO his. hold
 on my part, that the power of the Government on this subject, is limitnA fn cnininn money and rn0